Business, labor line up over Proposition 32, which would restrict fundraising by unions

Proposition 32

• Prohibits money deducted from paychecks to be used for political purposes.

• Bars corporations and unions from contributing to candidate-controlled committees.

• Bans government contractors from donating to officeholders who award their contracts.

A fall statewide ballot measure to limit the political power of public-sector unions is a burgeoning battle between business and labor.

Proposition 32 so far has been overshadowed by proposed tax increases and a bid to do away with the death penalty. But it may be one of the most intense campaigns come fall.

At the center of the dispute is a provision to prohibit payroll deductions that would be used for political purposes. That would disproportionately impact unions because the practice is less common among private-sector companies that raise a majority of their political contributions through executives and corporate treasuries.

The measure would also ban unions and corporations from giving directly to political candidates, bar them from donating to candidate-controlled committees and prevent government contractors from donating to elected officials responsible for awarding the contract.

Although corporations and unions could continue to fund independent expenditure campaigns in support of candidates, approval of the measure is widely seen as a huge setback for labor.

“This initiative will either be the death knell for unions’ ability to influence elections and weigh in on policy or it will enable them to continue to work as they have to elect officeholders and influence initiatives,” said Barbara O’Connor, director emeritus of the Institute for the Study of Politics and Media at Sacramento State University.

In San Diego, both sides are gearing for a fight that, following months of intense debate over public-employee pensions, could become a wedge issue in the high-stakes mayoral contest between Republican City Councilman Carl DeMaio and Democratic Rep. Bob Filner.

Proponents of the measure say it’s an evenhanded attempt to stem the tide of union and corporate money flowing into politics.

“Prop. 32 gives voters a chance to reduce special interest power in California and take back control of their government,” said Jake Suski, a spokesman for Yes on 32. “Each reform — banning direct contributions, ensuring employees’ political contributions are given voluntarily and banning government contractors from giving to politicians who oversee their contracts — applies to both corporations and unions, without exception.”

San Diego and San Jose, which last month approved sweeping pension overhauls, sent a message that further reforms must take place, he said.

Opponents say the authors have cleverly, if not disingenuously, couched the measure as campaign finance reform when it’s anything but. Brian Brokaw, a spokesman for the opposition, said there are loopholes in Proposition 32 that would allow certain corporate entities to sidestep restrictions.

“This will shift balance of power toward the explosion of super PACs and won’t take money out of politics,” he said.

While payroll deductions would be barred, workers providing annual written permission could continue to give by check or monthly debit from an account or credit card. The logistics of that are “implausible” given the hundreds of thousands of low- and middle-income workers, Brokaw said.